COMMUNITY PETITION FOR THE REVOCATION OF CORPORATE LEASE
TO: The U.S. Department of the Navy (NAVFAC), The Hawaii Department of Taxation (DOTAX), and State Representative David Alcos III.

RE: Termination of Greystar Management Rights at Kapilina Beach Homes.

I. PREAMBLE & STANDING
We, the undersigned residents of Kapilina Beach Homes, represent a unified front of Active Duty Navy families, Veterans, and the Civilian workforce. We are a beautiful and diverse community that contributes significantly to the defense and economy of Hawai'i. We refuse to be subjected to systemic financial exploitation and medical endangerment. We stand together to demand an immediate transition to management that respects the law and the residents of 'Ewa Beach.

  II. FORMAL GRIEVANCES & CRIMINAL ALLEGATIONS
1. FINANCIAL FRAUD & TAX MISREPRESENTATION (HRS § 708-830)

• The "O&M Parkmerced" Scheme: Residents are charged a mandatory monthly fee labeled "O&M Parkmerced." Management admits this is the Hawaii General Excise Tax (GET). Under Hawaii law, mislabeling a state tax as a "Maintenance" fee to a bankrupt California shell (Parkmerced, in $1.8B default and receivership) is a deceptive practice designed to hide the money trail from Hawaii tax auditors. See  SF's Parkmerced Placed in Receivership After $1.8B Default.
• Maintenance Fee Theft: A mandatory $25.00 monthly landscaping fee is collected from hundreds of families for services that are withheld. The resulting overgrowth has caused a community-wide infestation of rats, ants, and centipedes, posing a direct health risk (Leptospirosis/Rat Lungworm) to our children.
• In December 2025, Greystar settled for $24 Million over allegations of "junk fees" and hiding fees. See FTC $24M Settlement for Hidden Fees

2. UTILITY RACKETEERING & FRAUDULENT BILLING (RICO 1:25-cv-00300)

1. The Single-Meter Deception: Residents receive "estimated" utility spikes of 100% or more (often $1,000+). Management claims these are individual meter reads, yet the community confirms only one main meter exists for hundreds of units. See RICO Case Grant v. Greystar Real Estate Partners, LLC et al (Hawaii District Court).
2. Audit Obstruction: Management habitually refuses to provide detailed audits or usage logs, a strategy used to cover the property's operational waste by overbilling families

3. PREDATORY ALGORITHMIC PRICE-FIXING (FEDERAL CASE 1:24-cv-00710)

• Illegal Coordination: Rent hikes of 64%+ (up to $2,300/mo) are being issued via "Black Box" software. This violates the 2026 Federal Final Judgment barring Greystar from using anticompetitive, price-fixing algorithms.  As of April 1, 2026, Greystar must be fully transitioned away from these tools. Any 2026 rent hike based on these algorithms is a direct violation of their federal settlement terms. See DOJ Final Judgment: U.S. v. RealPage & Greystar.
• The Hawaii Legislative Precedent: Hawaii HB 2611 Bill Tracking was introduced in January 2026, this bill specifically prohibits algorithmic price-setting in Hawaii and establishes fines up to $1,000,000 for corporate entities.

4. INFRASTRUCTURE NEGLECT & RECORD FALSIFICATION (HRS § 708-872)

• Public Safety Crisis: Chronic failure to repair street lights has made our neighborhood unsafe at night, leading to numerous accidents.
• "Ghost" Work Orders: Maintenance tickets are habitually closed as "Complete" in the digital portal without work being performed. This is a criminal falsification of records intended to deceive residents and auditors. 
   

III. UNIFIED DEMANDS
1. Immediate Habitability & Health Enforcement

• Emergency Inspection Mandate: We demand a property-wide, independent inspection by the Department of Health (Wastewater & Sanitation Branches) to address systemic roof failures resulting in rat fecal matter and urine dripping into residential living spaces—a direct violation of HAR § 11-62.
• Cease Falsification of Records: An immediate end to the practice of closing maintenance work orders as "Complete" when only temporary "tarping" has occurred. We demand an audit of all closed tickets since February 2025 to verify actual remediation.

2. Financial Restitution & Utility Audit

• Refund of "Estimated" Utility Charges: We demand a full credit back to all resident accounts for every utility charge (Water, Sewer, Trash) based on "estimates" rather than factual, date-stamped meter readings as of February 2025. Unless Greystar/Conservice can provide an audited meter reading for each bill, the funds must be returned by March 10, 2026, into our rental register accounts/portal. 
• Late Fee Clawback: Immediate restitution of all late fees and administrative penalties tied to disputed, estimated, or duplicative utility charges.
• Maintenance Fee Restitution: A full refund of all "Common Area Maintenance" and "Parkmerced O&M" fees collected while life-safety repairs were willfully neglected.

3. Forensic Accounting & Tax Investigation

• The "Parkmerced" Audit: We demand a State investigation into the "Parkmerced" accounting nexus. Greystar must explain why Hawaii General Excise Tax (GET) and maintenance fees are being relabeled on resident ledgers under a California-based entity name, potentially violating HRS § 237-49.
• Algorithmic Rent Freeze: An immediate freeze on all algorithm-based rent increases until the property is certified as habitable and the accounting practices are verified as transparent and lawful.

4. Federal & Naval Oversight Activation

• Master Lease Revocation: We call upon the Navy Region Hawaii Commander to review the Public-Private Venture (PPV) agreement for "Material Breach." The Navy must exercise its sovereign oversight to protect residents from health endangerment and financial exploitation occurring on Federal land.
   

III. CLOSING STATEMENT
The "ghosting" of residents and the systemic falsification of business records must end. We are not just tenants; we are a community of thousands, including military families and vulnerable citizens, who demand the safety and financial transparency we have paid for.

Mahalo, Kapilina Beach Home Residents